NASDAQ, S&P 500, Dow Jones Analysis – Strong Jobs Data Put Pressure On Stocks

S&P 500 (SPX500)

As a result of the publication of employment market data, the S&P 500 experienced significant pressure. Initial Jobless Claims and ADP Employment Change figures both emphasized how robust the labor market is, which is bad for equities.

In order to combat inflation, the Fed aims to raise unemployment rates. The employment market is still tight, therefore even while recent economic statistics, such as today's Services PMI survey, indicate that the economy is slowing down, the Fed will probably maintain its hawkish stance.

It is not shocking to see that markets are down following positive employment statistics since the aggressive Fed is unfavorable for stocks. The yield on 2-year Treasuries increased in the meanwhile and went approaching multi-week highs around the 4.45% mark.

Despite today's widespread decline, energy equities were able to pick up some upward momentum as oil prices rose above recent lows.

NASDAQ (NAS100)

The NASDAQ, which has a major tech component, has also retreated as increased Treasury rates placed significant pressure on tech firms.

In today's trading session, Microsoft, Alphabet, and Amazon were all losing ground. Mega-cap tech companies continue to trade in a pessimistic market mood, and it seems that significant positive triggers will be required to buck the trend.

It is still to be seen if the next earnings season will provide tech stocks with such encouraging triggers.